DALLAS, Feb. 14 /PRNewswire/ -- Fleming Companies, Inc. (NYSE: FLM) today
reported a 36.6% increase in the 13-week fourth quarter 2000 net earnings to
$21.2 million, or $0.53 per share after adjustments to exclude strategic plan
charges and one-time items, compared to $15.5 million, or $0.40 per share, in
the 12-week fourth quarter of 1999. The company previously provided guidance
of $0.52 per share. Fourth quarter adjusted EBITDA, or earnings before
interest, taxes, depreciation, amortization, equity investment results, LIFO,
and strategic plan and one-time charges, was $118.4 million, or 3.27% of
sales, up 40 basis points compared to the prior year's 2.87% of sales. The
EBITDA result represents a 17.6% increase over the prior year.
"We are very pleased with our fourth quarter results because they validate
our strategic initiatives," said Mark Hansen, chairman of the board and chief
executive officer of Fleming. "Our focus on the distribution and price impact
retail businesses, paired with the benefits of our central procurement and
low-cost pursuit initiatives, are proving to be the key drivers of Fleming's
earnings momentum."
Total company net sales for the 13-week fourth quarter increased to
$3.63 billion from $3.50 billion in the 12-week fourth quarter of 1999.
Distribution segment net sales were $2.87 billion in the fourth quarter, up
from $2.63 billion in the prior year. The increase was due primarily to the
additional week in the 2000 fourth quarter as well as growth in sales to both
independent food retail and new retail channel customers. Incorporated in the
numbers is the existing Kmart supply business, which was initiated in the
third quarter of 1999 and fully cycled by the fourth quarter of 2000. The
2000 results also reflect the previously disclosed loss of the United
Supermarkets account and difficult comparisons following 1999's strong sales
resulting from customers' preparations for Y2K. During the fourth quarter the
company adopted a recent accounting rule on revenues, EITF 99-19, and restated
total company and distribution segment sales for the current and prior year.
The adoption of EITF 99-19 had no affect on gross margins or earnings.
Retail segment sales declined to $759 million from $871 million in the
prior year's fourth quarter and total retail food group same store sales
declined 6.2%. Same store sales at ongoing operations were substantially
better than the average. During the quarter, the company reached an agreement
to sell the 16-store Baker's operations to Kroger Co., which is expected to be
completed during the first quarter of 2001 and will include a three-year
supply arrangement for these stores.
Operating expenses declined for the total company, falling 7.5% to
$272.2 million from $294.3 million. Operating expenses in the distribution
and retail segments decreased as efficiencies were gained and low-cost pursuit
initiatives were realized. Operating expenses from support services
increased, representing the continuing consolidation of accounting, human
resources and information technology into the Shared Services Center and the
centralization of procurement into the Customer Support Center. The
consolidation and centralization of these functions are reducing system-wide
expenses.
Adjusted operating earnings were sharply higher for both the distribution
and retail segments of the business. Distribution earnings increased from
$78.3 million to $97.4 million, reflecting increased efficiencies and
improvements resulting from the strategic initiatives undertaken by the
company. Retail earnings improved from $11.0 million to $31.1 million.
Excellent earnings at the Food4Less and Rainbow stores combined with the sale
of underperforming operations generated the higher retail earnings.
Strategic plan charges for the fourth quarter totaled $98.1 million
pre-tax, including $72.7 million of cash-related charges and $25.4 million of
non-cash charges. Most of these charges relate to the planned and actual
disposition of company-owned conventional retail stores, particularly the ABCO
and Sentry operations, including asset write-downs, reserves for lease
liabilities, and severance. In 2001, the company expects charges to be down
substantially to approximately $20 million. Before giving effect to the
strategic plan adjustments, the fourth quarter loss was $37.4 million, or
$0.96 per share.
Results for the Year
For the full year, net sales were $14.44 billion, a 1.2% increase over
1999's sales of $14.27 billion. Distribution segment sales in 2000, adjusted
to reflect the sales on a comparable 52-week basis, increased 3.8% to
$10.95 billion from $10.55 billion. Net earnings excluding strategic plan
charges and one-time items were $62.2 million, or $1.56 per share, up 43.2%
compared to $43.4 million, or $1.12 per share, in the prior year. At 3.16% of
sales, the 2000 adjusted EBITDA of $456.0 million represents a 10.9% increase
over the prior year. Unadjusted, the net loss was $122.1 million, or
$3.15 per share.
Conference Call and Webcast
A teleconference and webcast to review fourth quarter and full-year
results will be held on Wednesday, February 14, 2001 at 10:00 a.m. Central
Standard Time. To access the call, dial in to the conference line at
913.981.4900, confirmation code 662922. Interested parties may listen to the
conference call over the Internet on the company's website at
http://www.fleming.com . Additionally, the teleconference will be available for
replay until March 2, 2001 at 5:00 p.m. Central Standard Time by dialing
402.280.9273, confirmation code 662922.
About Fleming Companies, Inc.
Fleming is an industry leader in distribution and has a growing presence
in price impact retail. Fleming's primary business is buying and selling
merchandise. Through our distribution group, we distribute products to
customers that operate approximately 3,000 supermarkets, 3,000 convenience
stores, and nearly 1,000 supercenters, discount, limited assortment, drug,
specialty, and other stores across the United States.
Safe-Harbor Statement
This release, including the attached tables, includes statements that
(a) predict or forecast future events of results, (b) depend on future events
for their accuracy, or (c) embody projections and assumptions which may prove
to have been inaccurate, including expectations for years 2001 and beyond.
The projections were not prepared with a view to compliance with the
guidelines established by the American Institute of Certified Public
Accountants regarding projections. These projections, forward-looking
statements and the company's business and prospects are subject to a number of
factors that could cause actual results to differ materially, including: the
ability to achieve the expected synergies and anticipated cost savings from
the Kmart alliance; unanticipated transition and start-up costs related to the
Kmart alliance; the ability to obtain capital or obtain it on acceptable
terms; unanticipated problems in the supply chain due to the increased volumes
from the Kmart alliance; adverse effects of the changing industry environment
and increased competition; sales declines and loss of customers; disruption
caused by implementation of strategic alternatives regarding conventional
retail; exposure to litigation and other contingent losses; unanticipated
charges related to the strategic initiatives plan or failure to achieve the
expected results of such plan; failure of the company to achieve necessary
cost savings; and negative effects of the company's substantial indebtedness
and the limitations imposed by restrictive covenants contained in the
company's debt instruments. These and other factors are described in the
company's periodic reports available from the Securities and Exchange
Commission.
Fleming Companies, Inc.
Recent Achievements
Total Company:
-- Adjusted earnings increased 37% in the fourth quarter 2000 compared
to 1999.
-- Adjusted earnings totaled $0.53 per share, beating earlier guidance
of $0.52 per share.
-- Adjusted earnings per share guidance was given for 2001, 2002, and
2003 of $1.90, $2.50, and $3.30, respectively, representing a
projected compound annual earnings growth rate of more than 30% from
1999 through 2003.
Distribution:
-- Distribution segment adjusted operating earnings totaled
$97.4 million, or 3.40% of sales, up from $78.3 million, or 2.98% of
sales, in 1999's fourth quarter.
-- Fleming and Kmart entered into a 10-year, $4.5 billion alliance that
redefines the traditional retail business model. Fleming will
procure and distribute substantially all of the food and consumable
products in all current and future Kmart and Kmart supercenter
stores. The supply arrangement includes grocery, meat, produce,
frozen foods, dairy, and other grocery items, as well as Fleming's
BestYet store brand product. The alliance may be further expanded to
include an agreement on health and beauty products and related
categories.
-- Over $1.2 billion in annualized new business was added to the
distribution segment during 2000, exceeding the sales goal of
$1 billion.
-- Distribution operations benefited from economies of scale. Four
distribution divisions exceeded $1 billion in volume at the end of
2000. The average volume per distribution center increased
14.8 percent year-over-year from $479.4 million in 1999 to
$550.2 million in 2000.
-- Retail sales of Fleming's private label products exceeded $1 billion
in 2000, a record level. In addition, Fleming's BestYet brand
received four prestigious "Addy" awards, honoring BestYet for
outstanding advertising production.
-- The transition of independent retailers from the Minneapolis
distribution center to the LaCrosse and Superior distribution centers
was completed. This positions the Minneapolis distribution center as
the exclusive supplier to Fleming's Rainbow stores.
-- Sales to convenience store operators increased 30% during 2000.
During the fourth quarter, Fleming completed the successful
transition of the Clark Oil Co. business to its new convenience store
distribution center in Romeoville, Illinois.
Retail:
-- Retail segment adjusted operating earnings totaled $31.1 million, or
4.10% of sales, up from $11.0 million, or 1.26% of sales, in 1999's
fourth quarter. Markedly higher earnings at the Rainbow and
Food4Less operations accounted for substantially all of the higher
segment earnings.
-- Fleming reached an agreement to sell 16 Bakers Supermarkets to Kroger
Co. and will implement a three-year supply agreement upon successful
completion of the transaction. The transaction should be finalized
in the first quarter of 2001.
-- Eleven ABCO stores, located in Phoenix and Tucson, are to be sold by
Fleming to Safeway. The transaction should be finalized in the first
quarter of 2001.
-- Fleming announced plans to enter Texas with its price impact
operation. The company signed a lease for its first Texas-based
store in Lubbock.
-- Fleming is accelerating the growth of its price impact operations.
Up to 25 price impact stores will be opened in 2001. Up to 100 price
impact stores will be opened over the coming three years. The new
price impact store openings will result from a combination of new
building, conversions of existing retail stores, and acquisitions.
-- Fleming's newest retail operation, Yes!Less, opened for business in
2000. A concept-stage operation, Yes!Less features a limited
assortment of food and general merchandise products in approximately
12,000 square feet of space. Six Yes!Less stores were open at year
end 2000.
Support Services:
-- The transition and consolidation of procurement into the Lewisville-
based Customer Service Center is approximately two-thirds complete
and expected to be finalized by the end of 2001.
-- Consolidation of administrative functions, such as accounting and
information technology, continues on plan in Oklahoma City.
Other:
-- Total debt, including capitalized leases, was $1.670 billion at year
end 2000. This is down $24 million from $1.694 billion at the end of
1999.
-- Adjusted EBITDA to interest was 2.61x at the end of 2000, compared to
2.49x at the end of 1999.
-- Capital expenditures for 2000 totaled $153 million. Projected
capital spending for 2001 is anticipated to be approximately
$225 million, including up to $50 million in capital expenditures
related to the Kmart alliance.
-- Amortization of goodwill, which is a non-cash item, totaled $0.53 per
share in 1999 and 2000. Excluding the impact of goodwill
amortization, earnings were $1.65 in 1999 and $2.09 in 2000.
-- On February 7, 2001, Fleming announced that The Yucaipa Companies
will make a $50 million investment in Fleming. Yucaipa will hold
approximately 3.8 million newly issued common shares, representing
8.7% of Fleming's outstanding stock. In addition, Yucaipa has a
12-month option to purchase an additional $50 million of Fleming's
common stock at the then-current average market price of Fleming's
stock.
Fleming Companies, Inc. (NYSE: FLM)
Consolidated Condensed Statements of Operations
For the 13 weeks ended December 30, 2000,
and the 12 weeks ended December 25, 1999
(In thousands, except per share amounts)
2000
Reported Adjustments Adjusted
(A)
Net sales $3,624,784 $217 $3,625,001
% change 3.5%
Costs and expenses:
Cost of sales 3,289,126 (10,690) 3,278,436
Selling and administrative 293,219 (21,045) 272,174
Interest expense 42,910 42,910
Interest income (7,495) (7,495)
Equity investment results 2,352 2,352
Impairment/restructuring charge 66,331 (66,331) 0
Total costs and expenses 3,686,443 (98,066) 3,588,377
Income (loss) before taxes (61,659) 98,283 36,624
Taxes on income (loss) (24,298) 39,755 15,457
Net income (loss) ($37,361) $58,528 $21,167
Earnings (loss) per share:
Basic ($0.96) $1.50 $0.54
Diluted ($0.96) $0.53
% change 32.5%
Dividends paid per share $0.02 $0.02
Weighted average shares outstanding:
Basic 38,934 38,934
Diluted 38,934 40,024
Additional information:
Depreciation/amortization, net of
amounts in interest expense $39,116 ($168) $38,948
Goodwill amortization (included above) $4,734 $0 $4,734
EBITDA (B) $20,304 $98,115 $118,419
% of sales 3.27%
% change 17.6%
Fleming Companies, Inc. (NYSE: FLM)
Consolidated Condensed Statements of Operations (Continued)
For the 13 weeks ended December 30, 2000,
and the 12 weeks ended December 25, 1999
(In thousands, except per share amounts)
1999
Reported Adjustments Adjusted
(A)
Net sales $3,503,337 $24 $3,503,361
% change
Costs and expenses:
Cost of sales 3,158,199 (2,335) 3,155,864
Selling and administrative 306,081 (11,801) 294,280
Interest expense 37,940 37,940
Interest income (16,999) 9,157 (7,842)
Equity investment results 1,841 (713) 1,128
Impairment/restructuring charge 23,656 (23,656) 0
Total costs and expenses 3,510,718 (29,348) 3,481,370
Income (loss) before taxes (7,381) 29,372 21,991
Taxes on income (loss) (3,578) 10,074 6,496
Net income (loss) ($3,803) $19,298 $15,495
Earnings (loss) per share:
Basic ($0.10) $0.50 $0.40
Diluted ($0.10) $0.40
% change
Dividends paid per share $0.02 $0.02
Weighted average shares outstanding:
Basic 38,470 38,470
Diluted 38,470 38,949
Additional information:
Depreciation/amortization, net of
amounts in interest expense $37,711 $0 $37,711
Goodwill amortization (included above) $5,345 $0 $5,345
EBITDA (B) $72,173 $28,540 $100,713
% of sales 2.87%
% change
(A) Adjustments relate to the strategic plan which was announced in
December, 1998 and one-time adjustments. One-time adjustments for
1999 included: $31.0 million in charges relating to closing certain
company-owned retail stores, $22.0 million income from extinguishing
a portion of the self insured worker's compensation liability, and
$9.2 million interest income relating to refunds in federal income
taxes from prior years. All remaining charges relate to the
strategic plan which includes non-cash impairments of asset values
and cash restructuring costs for severance, lease termination, real
estate disposition costs for discontinued operations and other
related expenses.
(B) EBITDA is earnings before interest expense, income taxes,
depreciation and amortization, equity investment results, and LIFO
($2,415 income in 2000 and $2,062 charge in 1999).
Fleming Companies, Inc. (NYSE: FLM)
Segment For the 13 weeks ended December 30, 2000, and the
Information 12 weeks ended December 25, 1999
Income (Loss) (In thousands, except per share amounts)
2000
Reported Adjustments Adjusted
Distribution
Gross sales $3,278,989 $217 $3,279,206
Intersegment elimination (413,606) 0 (413,606)
Net sales $2,865,383 $217 $2,865,600
% change 8.9%
Gross margin $157,641 $8,210 $165,851
% of distribution gross sales 5.06%
Selling and administrative (66,099) 16,348 (49,751)
% of distribution gross sales -1.52%
Intersegment elimination (18,674) 0 (18,674)
Operating earnings $72,868 $24,558 $97,426
% of distribution net sales 3.40%
EBITDA $92,574 $31,933 $124,507
% of distribution net sales 4.34%
% change 23.7%
Retail
Net sales $759,401 $0 $759,401
% change -12.8%
Gross margin $177,900 $1,719 $179,619
% of retail sales 23.65%
Selling and administrative (170,113) 2,925 (167,188)
% of retail sales -22.02%
Intersegment profit 18,674 0 18,674
Operating earnings $26,461 $4,644 $31,105
% of retail sales 4.10%
EBITDA ($13,821) $60,467 $46,646
% of retail sales 6.14%
% change 49.0%
Support Services
Operating earnings ($56,890) $2,750 ($54,140)
% of total company sales -1.49%
EBITDA ($58,449) $5,715 ($52,734)
% of total company sales -1.45%
Fleming Companies, Inc. (NYSE: FLM)
Segment For the 13 weeks ended December 30, 2000, and the
Information 12 weeks ended December 25, 1999
Income (Loss) (Continued) (In thousands, except per share amounts)
1999
Reported Adjustments Adjusted
Distribution
Gross sales $3,152,990 $24 $3,153,014
Intersegment elimination (520,885) 0 (520,885)
Net sales $2,632,105 $24 $2,632,129
% change
Gross margin $159,182 $1,473 $160,655
% of distribution gross sales 5.10%
Selling and administrative (61,907) 551 (61,356)
% of distribution gross sales -1.95%
Intersegment elimination (20,959) 0 (20,959)
Operating earnings $76,316 $2,024 $78,340
% of distribution net sales 2.98%
EBITDA $96,317 $4,350 $100,667
% of distribution net sales 3.82%
% change
Retail
Net sales $871,232 $0 $871,232
% change
Gross margin $191,524 $904 $192,428
% of retail sales 22.09%
Selling and administrative (235,243) 32,810 (202,433)
% of retail sales -23.24%
Intersegment profit 20,959 0 20,959
Operating earnings ($22,760) $33,714 $10,954
% of retail sales 1.26%
EBITDA ($20,605) $51,913 $31,308
% of retail sales 3.59%
% change
Support Services
Operating earnings ($14,499) ($21,578) ($36,077)
% of total company sales -1.03%
EBITDA ($3,539) ($27,723) ($31,262)
% of total company sales -0.89%
Fleming Companies, Inc. (NYSE: FLM)
Consolidated Condensed Statements of Operations
For the 53 weeks ended December 30, 2000,
and the 52 weeks ended December 25, 1999
(In thousands, except per share amounts)
2000
Reported Adjustments Adjusted
(A)
Net sales $14,443,815 ($6,455) $14,437,360
% change 1.2%
Costs and expenses:
Cost of sales 13,096,915 (56,990) 13,039,925
Selling and administrative 1,185,003 (45,060) 1,139,943
Interest expense 174,569 174,569
Interest income (32,662) (32,662)
Equity investment results 8,034 (315) 7,719
Impairment/restructuring charge 212,845 (212,845) 0
Total costs and expenses 14,644,704 (315,210) 14,329,494
Income (loss) before taxes (200,889) 308,755 107,866
Taxes on income (loss) (78,747) 124,447 45,700
Net income (loss) ($122,142) $184,308 $62,166
Earnings (loss) per share:
Basic ($3.15) $4.76 $1.61
Diluted ($3.15) $1.56
% change 39.3%
Dividends paid per share $0.08 $0.08
Weighted average shares outstanding:
Basic 38,716 38,716
Diluted 38,716 39,936
Additional information:
Depreciation/amortization, net of
amounts in interest expense $169,190 ($6,830) $162,360
Goodwill amortization (included
above) $20,591 $0 $20,591
EBITDA (B) $154,389 $301,610 $455,999
% of sales 3.16%
% change 10.9%
Fleming Companies, Inc. (NYSE: FLM)
Consolidated Condensed Statements of Operations (Continued)
For the 53 weeks ended December 30, 2000,
and the 52 weeks ended December 25, 1999
(In thousands, except per share amounts)
1999
Reported Adjustments Adjusted
(A)
Net sales $14,272,036 ($5,506) $14,266,530
% change
Costs and expenses:
Cost of sales 12,834,869 (17,806) 12,817,063
Selling and administrative 1,261,631 (24,090) 1,237,541
Interest expense 165,180 165,180
Interest income (40,318) 9,157 (31,161)
Equity investment results 10,243 (832) 9,411
Impairment/restructuring charge 103,012 (103,012) 0
Total costs and expenses 14,334,617 (136,583) 14,198,034
Income (loss) before taxes (62,581) 131,077 68,496
Taxes on income (loss) (17,853) 42,938 25,085
Net income (loss) ($44,728) $88,139 $43,411
Earnings (loss) per share:
Basic ($1.17) $2.30 $1.13
Diluted ($1.17) $1.12
% change
Dividends paid per share $0.08 $0.08
Weighted average shares outstanding:
Basic 38,305 38,305
Diluted 38,305 38,699
Additional information:
Depreciation/amortization, net of
amounts in interest expense $157,510 $0 $157,510
Goodwill amortization (included
above) $20,563 $0 $20,563
EBITDA (B) $281,089 $130,245 $411,334
% of sales 2.88%
% change
(A) Adjustments relate to the strategic plan which was announced in
December, 1998 and one-time adjustments. One-time adjustments for
2000 include: an $8.6 million gain from the sale of a facility,
$10.4 million in charges relating to closing certain company-owned
retail stores, and $1.9 million net income from litigation
settlements. One-time adjustments for 1999 include: A $5.6 million
gain from the sale of a facility, $31.0 million in charges relating
to closing certain company-owned retail stores, $22 million income
from extinguishing a portion of the self insured worker's
compensation liability, and $9.2 million interest income relating to
refunds in federal income taxes from prior years. All remaining
charges relate to the strategic plan which includes non-cash
impairments of asset values and cash restructuring costs for
severance, lease termination, real estate disposition costs for
discontinued operations and other related expenses.
(B) EBITDA is earnings before interest expense, income taxes,
depreciation and amortization, equity investment results, and LIFO
charge ($3,485 in 2000 and $10,737 in 1999).
Fleming Companies, Inc. (NYSE: FLM)
Segment For the 53 weeks ended December 30, 2000, and the
Information 52 weeks ended December 25, 1999
Income (Loss) (In thousands, except per share amounts)
2000
Reported Adjustments Adjusted
Distribution
Gross sales $12,926,083 ($6,455) $12,919,628
Intersegment elimination (1,757,547) 0 (1,757,547)
Net sales $11,168,536 ($6,455) $11,162,081
% change 5.8%
Gross margin $606,925 $30,053 $636,978
% of distribution gross sales 4.93%
Selling and administrative (243,499) 18,634 (224,865)
% of distribution gross sales -1.74%
Intersegment elimination (66,427) 0 (66,427)
Operating earnings $296,999 $48,687 $345,686
% of distribution net sales 3.10%
EBITDA $362,928 $84,213 $447,141
% of distribution net sales 4.01%
% change 13.2%
Retail
Net sales $3,275,279 $0 $3,275,279
% change -11.9%
Gross margin $754,821 $10,518 $765,339
% of retail sales 23.37%
Selling and administrative (759,352) 16,645 (742,707)
% of retail sales -22.68%
Intersegment profit 66,427 0 66,427
Operating earnings $61,896 $27,163 $89,059
% of retail sales 2.72%
EBITDA ($7,772) $174,712 $166,940
% of retail sales 5.10%
% change 30.9%
Support Services
Operating earnings ($196,998) $19,745 ($177,253)
% of total company sales -1.23%
EBITDA ($200,767) $42,685 ($158,082)
% of total company sales -1.09%
Fleming Companies, Inc. (NYSE: FLM)
Segment For the 53 weeks ended December 30, 2000, and the
Information 52 weeks ended December 25, 1999
Income (Loss) (Continued) (In thousands, except per share amounts)
1999
Reported Adjustments Adjusted
Distribution
Gross sales $12,717,749 ($5,506) $12,712,243
Intersegment elimination (2,164,615) 0 (2,164,615)
Net sales $10,553,134 ($5,506) $10,547,628
% change
Gross margin $627,272 $4,270 $631,542
% of distribution gross sales 4.97%
Selling and administrative (269,136) 7,912 (261,224)
% of distribution gross sales -2.05%
Intersegment elimination (68,297) 0 (68,297)
Operating earnings $289,839 $12,182 $302,021
% of distribution net sales 2.86%
EBITDA $353,334 $41,726 $395,060
% of distribution net sales 3.75%
% change
Retail
Net sales $3,718,902 $0 $3,718,902
% change
Gross margin $827,680 $8,030 $835,710
% of retail sales 22.47%
Selling and administrative (897,506) 35,940 (861,566)
% of retail sales -23.17%
Intersegment profit 68,297 0 68,297
Operating earnings ($1,529) $43,970 $42,441
% of retail sales 1.14%
EBITDA $26,380 $101,192 $127,572
% of retail sales 3.43%
% change
Support Services
Operating earnings ($112,774) ($19,762) ($132,536)
% of total company sales -0.93%
EBITDA ($98,625) ($12,673) ($111,298)
% of total company sales -0.78%
Fleming Companies, Inc. (NYSE: FLM)
Analysis of Impairment and Restructuring Charges
(In millions, except per share amounts)
(Amounts through 2000 are final, all other amounts are estimates)
1998 1999
Full Full
Year Qtr 1 Qtr 2 Qtr 3 Qtr 4 Year
Impairment of Assets
Goodwill $372 $22 $0 $14 $0 $36
Other assets 218 2 1 16 7 26
Total impairment of assets 590 24 1 30 7 62
Other restructuring charges 63 13 5 6 17 41
Total impairment and
restructuring charges 653 37 6 36 24 103
Other periodic disposition and
exit costs affecting:
Net sales 0 0 0 0 0 0
Cost of sales 9 6 7 3 2 18
Selling and administrative 6 3 3 6 4 16
Total 15 9 10 9 6 34
Total charges before taxes 668 46 16 45 30 137
Income tax benefit 125 14 4 17 10 45
Total charges after taxes $543 $32 $12 $28 $20 $92
Negative effect on EPS $14.33 $0.84 $0.31 $0.73 $0.50 $2.39
Non-cash charges (pre-tax) $594 $29 $6 $35 $9 $79
Cash Charges (pre-tax) 74 17 10 10 21 58
Total $668 $46 $16 $45 $30 $137
Cash Expended $10 $16 $16 $10 $15 $57
Fleming Companies, Inc. (NYSE: FLM)
Analysis of Impairment and Restructuring Charges (Continued)
(In millions, except per share amounts)
(Amounts through 2000 are final, all other amounts are estimates)
2000
Full
Qtr 1 Qtr 2 Qtr 3 Qtr 4 Year
Impairment of Assets
Goodwill $0 $0 $3 $0 $3
Other assets 2 1 78 7 88
Total impairment of assets 2 1 81 7 91
Other restructuring charges 41 20 2 59 122
Total impairment and
restructuring charges 43 21 83 66 213
Other periodic disposition and
exit costs affecting:
Net sales 0 1 1 0 2
Cost of sales 13 22 11 11 57
Selling and administrative 8 2 6 21 37
Total 21 25 18 32 96
Total charges before taxes 64 46 101 98 309
Income tax benefit 26 19 41 40 126
Total charges after taxes $38 $27 $60 $58 $183
Negative effect on EPS $0.98 $0.71 $1.53 $1.45 $4.58
Non-cash charges (pre-tax) $12 $6 $85 $25 $128
Cash Charges (pre-tax) 52 40 16 73 181
Total $64 $46 $101 $98 $309
Cash Expended $35 $46 $26 $11 $118
Fleming Companies, Inc. (NYSE: FLM)
Analysis of Impairment and Restructuring Charges (Continued)
(In millions, except per share amounts)
(Amounts through 2000 are final, all other amounts are estimates)
Total for yrs
2001 2002 1998 - 2002
Impairment of Assets
Goodwill $0 $0 $411
Other assets 0 0 332
Total impairment of assets 0 0 743
Other restructuring charges 13 3 242
Total impairment and
restructuring charges 13 3 985
Other periodic disposition and
exit costs affecting:
Net sales 0 0 2
Cost of sales 5 1 90
Selling and administrative 2 0 61
Total 7 1 153
Total charges before taxes 20 4 1,138
Income tax benefit 8 2 306
Total charges after taxes $12 $2 $832
Negative effect on EPS $0.29 $0.06 $21.66
Non-cash charges (pre-tax) $5 $0 $806
Cash Charges (pre-tax) 15 4 332
Total $20 $4 $1,138
Cash Expended $56 $27 $268
CONTACTS:
(Media) Shane Boyd 972.906.8824
(Investors-Equity) Meredith Anderson 972.906.8592
(Investors-Debt) Alan McIntyre 972.906.8126
SOURCE Fleming
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Related links:
http://www.fleming.com
CONTACT:
media, Shane Boyd, +1-972-906-8824, or
investors-equity, Meredith Anderson, +1-972-906-8592, or
investors-debt, Alan McIntyre, +1-972-906-8126, all of Fleming
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